Steel Mills

Essar Steel Algoma Returns to Profitability in Q3

February 17, 2015

Essar Steel Algoma announced a return to profitability with a net income of CDN$26.8 million for the third quarter ending December 31, 2014, after reporting a net loss of CDN 38.6 million for the same period of 2013.

Steel shipments for the quarter increased 4.7 percent year over year to 618,538 tons. Average realized sales returns were up 15.8 percent. Higher shipment volumes along with higher selling prices and lower costs strengthened results for the quarter.

Recapitalization and refinancing during the quarter resulted in a deleveraging of the balance sheet by more than US$200 million and an approximate US$47 million reduction in annual cash interest expense.

“The recapitalization was a significant and important milestone this quarter,” said CEO Kalayan Ghosh. “While we are seeing some near-term softening in market fundamentals we are confident our balanced product mix and low cost position provide a sound foundation for strategic reinvestment in optimization and growth in the months and years ahead. In the interim we remain focused on sustaining a safe and reliable operation during the winter season.”